The evolution of energy is the next big challenge for facilities managers

Louis Burford, head of solution sales and UK optimisation Centrica.

Over
the last decade, energy management has become a more prominent part
of the job description for facilities managers. In many of the
businesses we work with, we’re seeing the role expand to include
management and even procurement of energy, so FMs are having to adapt
quickly to this additional responsibility.

As
if that wasn’t enough, appetite for more advanced energy systems is
increasing, adding an extra layer to the challenge that FMs face. As
businesses seek to become more intelligent about their energy use,
it’s facilities managers that will be charged with spearheading
projects to not only reduce consumption but to make the energy they
use more sustainable.

The
challenge

We
recently polled 200 large businesses from across the UK and found
that almost 90 per cent expect that half of their energy requirements
will be fulfilled by local or renewable sources by 2025. On top of
this, 80 per cent expected at least a quarter of their total energy
need to be generated on-site by the same deadline.

If
the predictions our survey uncovered are realised, it’s likely that
the emissions targets set for businesses by the government’s Clean
Growth Plan will be met considerably earlier than expected. In fact,
more than a quarter of the businesses we surveyed had already
invested in some form of onsite power generation and another third
said they were considering it. Clearly, firms are not only
acknowledging the need to approach energy consumption in a more
sustainable way but are also actively exploring the methods that will
achieve their goals.

This
will have obvious environmental benefits, but a more strategic
approach to energy will also be vital to maintaining businesses’
competitiveness. Most (86 per cent) of the businesses in our survey
said they expected ‘energy-ethical’ behaviour/operations to
become essential to their future brand identity, with many already
proactively changing how they use energy to attract customers. As
more businesses recognise the strategic value of ‘better’ energy
use, pressure to implement new technology that can increase
efficiency and reduce emissions will mount.

So,
what approaches are businesses taking and which will suit yours best?

A
lot of organisations have already made significant headway on
reducing energy costs. Competitive procurement processes mean that
the savviest companies are already getting the best price they can
from the market. Moving beyond procurement efficiencies, there are
real gains to be made in bringing down usage and investing in on-site
generation and storage.

A
vital first step is identifying what business systems would benefit
from new energy technology – it’s crucial that investment is
channeled intelligently in a way that lines up with the
organisation’s energy needs as well as its wider business
objectives.

Insight
to action

As
with any major project, metrics and success benchmarks need to be
set. Implementing a more advanced energy system is no different. To
that end, energy insight is an absolute must.

Sub-metering
is sometimes used as a way of tracking how energy is used by
different processes in an organisation. However, this tends to be
expensive and installation requires equipment shut-down. It will also
only offer a snapshot of energy usage whenever the sub-meter is read,
rather than a constant flow of information.

For
these reasons, many businesses favour smart sensors as a way of
collecting intelligence on energy use. They can be installed easily
on any equipment that produces or uses energy to provide data in real
time. This data is stored digitally so it can be viewed through an
easy-to-use dashboard, giving the facilities manager a detailed map
of how their organisation uses energy, making it easier to pinpoint
where investment in new tech could be most effective.

The
range of energy technology out there means that choosing the right
solutions for a particular business is complex. Basing these
decisions on smart sensor data vastly increases the likelihood of
selecting the right approach and achieving the best return on
investment. Often this can be done in partnership with an energy
provider who should be able to help interpret the data and choose the
most appropriate solution to implement.

Investing
in the right tech

Upgrading
to newer energy technology will be part of the strategy for many
facilities managers once they’ve gone through the process of
collecting and analysing smart sensor data. Pinpointing the right
technology is always going to be a challenge which is why working
with an expert is often advisable – different energy solutions are
designed to achieve different goals so what’s right for one
business won’t necessarily work as well for another.

Combined
heat and power units (CHP), for example, generate heat and
electricity simultaneously on-site. They can be incredibly effective
at reducing energy cost but aren’t suitable for all types of
business.

Only
a third of the fuel burned by a traditional power plant, connected to
the National Grid, reaches the end user as energy due to the
inefficiencies of distributing electricity over long distances. CHPs
not only cut down the travel distance by generating power on-site
but, because they’re designed to make use of the heat byproduct of
power generation, they also capture any ‘wasted’ energy as heat.
This heat can then be put to use fulfilling a secondary need – a
leisure centre or hotel’s need to heat swimming pools, for example.

Other
types of business will find that different technologies are more
appropriate. As renewable energy solutions become more plentiful and
more affordable, smart sensor insight will help to identify
opportunities where these technologies can be introduced without
affecting operations.

One
of the main drawbacks to solar or wind power is that they are weather
dependent and, therefore, can’t be relied on for the consistent
delivery of electricity. Making the most of these solutions could
mean identifying non-critical systems that can afford an intermittent
power supply – temperature control systems in a warehouse that
stores non-perishables, for example.

Investment
in on-site battery storage can take this to the next level by
facilitating constant energy provision from renewable sources. A
small manufacturer, for example, could store surplus solar energy
generated during the day in order to bolster supply overnight, or
during peak price periods. Doing so maximises the on-site usage of
renewable energy – improving the commercial viability of on-site
generation and storage systems.

Getting
ahead of the game

Our
poll highlighted that a more sophisticated approach to energy use is
high on the agenda for many organisations. For the facilities
managers working in these businesses, implementing this change will
soon become a key focus – if it isn’t already.

Yes, taking ownership of energy within a business is a major responsibility, but the advantages that can be delivered for the company if managed correctly mean the payback for facilities managers is potentially huge. The evolution of energy presents an opportunity to bring about real, positive change within a business that will ultimately elevate facilities management in the eyes of the board and make it a more strategically important role. www.centrica.com